An oversubscribed seed investment round for Stroom Network, a liquid staking mechanism for Bitcoin’s Lightning Network, raised $3.5 million.
Liquid Staking Protocol Stroom Network Completes $3.5 Million Seed Funding Round
Berlin-based cryptocurrency investment firm Greenfield took the lead in the round. Lemniscap, No Limit Holdings, Cogitent Ventures, and Mission Street, Ankr’s venture arm, participated in the round, according to a release. The funding will be utilized to grow the team and introduce Bitcoin liquid staking on Lightning, along with the introduction of the lnBTC wrapped token, which is based on Ethereum.
How does Stroom Work?
In order to facilitate quick and inexpensive transactions, the Lightning Network, a second-layer solution of bi-directional payment channels built on top of the Bitcoin blockchain, was created. Users can typically earn staking rewards on an underlying proof-of-stake blockchain asset, typically Ether, using liquid staking protocols, which also make that asset useful and liquid for usage in other DeFi applications. Similar principles govern Stroom.
With the use of Stroom’s protocol, customers can leverage their Bitcoin investments on both Ethereum and the Lightning Network. Users can profit from payments made on the network by putting Bitcoin into Lightning as a deposit. In parallel, Stroom launches lnBTC, a wrapped Bitcoin token pegged at a 1:1 ratio to Bitcoin on the Ethereum platform, allowing users to investigate additional income potential throughout the Ethereum ecosystem.
Our goal is to provide anyone with an easy way to earn Lightning routing fees and contribute to Bitcoin’s scalability,
Slava Zhygulin, Stroom CTO
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